Management

Do You Track Your Service Department’s Inventory?

Have you heard the saying, “What gets measured gets managed”? Peter Drucker, best known as the man who invented modern business management, is credited for coining that phrase. Mr. Drucker felt, if you cannot measure something, and know the results, you cannot possibly improve it. With that being said, I am continually surprised by the number of Service Managers I speak with who do not know what the actual inventory of their service department is,… Do You Track Your Service Department’s Inventory?

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Is Flat Rate Compensation Ruining Our Service Business?

There’s a consensus in the industry that there’s a serious shortage of automotive technicians able to work on today’s advanced cars and trucks. Now, some analysts and experts say that simply recruiting more technicians will not help. Dealerships today are losing technicians too fast for recruitment to make up the emerging gap. The numbers are staggering. Two of the major domestic brands estimate there will be a need for 15,000 plus new technicians for their… Is Flat Rate Compensation Ruining Our Service Business?

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Developing Your Best Special-Order Parts Process – Part 3

This is Part 3 in a three-part article. View Part 1 | View Part 2 A means to emphasize the importance of insuring the quick turnaround of special-order parts would be to incorporate various incentives or penalties within the pay plans of service advisors and fixed operation managers. The considerations can take many different forms. Service advisor compensation additions for positive performance can include but are not limited to the following considerations. Motivational spiffs can… Developing Your Best Special-Order Parts Process – Part 3

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Developing Your Best Special-Order Parts Process – Part 2

This is Part 2 in a three-part article. View Part 1 | View Part 3 Another of the more traditional methods to handle the special-order parts process is to have the customer contacted by an employee in the parts department. The initial ordering process is very similar to the service advisor contact technique. After the order is placed the service advisor contacts the customer to notify them that a part is being placed on order.… Developing Your Best Special-Order Parts Process – Part 2

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Developing Your Best Special-Order Parts Process – Part 1

This is Part 1 in a three-part article. View Part 2 | View Part 3 Say the words “Special-Order Parts” and a number of things immediately come to mind for dealership employees, according to their job and the department they work in. A service advisor will have to be the bearer of bad news to the customer. The vehicle will have to be held over. The customer will have to come back. The technician will… Developing Your Best Special-Order Parts Process – Part 1

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What Should Your Hours Per Repair Order Be?

This is a common question but also a commonly misunderstood measurement. All Service Departments are not created equal. Several factors within each Service Department can play a major role in this number. Some of these factors are: Additional Service Requests ASR (and process) Average mileage of vehicle Multi-Point Inspections (and process) Menus in place (and process) Work mix – repair/maintenance/competitive Express Service Any of these factors mentioned above will not only affect your Hours Per… What Should Your Hours Per Repair Order Be?

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